Very few people would dispute that maintaining a diversified portfolio is crucial to the success of any long-term investment strategy. In simple language, it’s about spreading your exposure, reducing the risk that your overall performance can be wiped out by unwise choices. While there’s been more than a fair bit of liberalisation since the advent of democracy, most South Africans probably think about asset classes rather than geography when they talk about diversification. Start talking about moving your savings out of SA and there is a big chance the discussion soon turns to unrelated matters of patriotism and an imaginary conflict with promoting development here at home and the need to mobilise resources for social and economic goals, such as funding infrastructure. Which is not surprising in a country where a disconnect between those with the means to save, and the rest, is such an important feature. So, when investing overseas comes up, it’s often in the context of capital flig...

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